Scaling a business creates certain challenges. The campaign of growth often presents many plateaus. These can be due to external factors (supply chain or new competitor), internal developments that impact the business (turnover or staffing), or economic factors (inflation). The recognition of this can prove helpful and encouraging. It also supports the psychology around the need for change and how to prep for the next season of change before you get there. Sales and revenue are a central requirement to growth and we have all heard the line “revenue rules with an iron fist.” However, growth will have challenges and costs which can impact the business owner, the team, and even the ability to handle an increasing customer base.
In this installment for the newsletter, we will look at the most common factors that impact the ability to scale sales for a small to medium-size businesses. Do you recognize any of these in your current business? What is your plan to address these as they occur?
Scale hinges upon the owner - Reduce owner dependence. The CEO or owner would value helping secure a new customer but what percentage of new business comes through the owner? How can an owner work to create a pathway out of sales which will allow more time to coach & steer the vision and performance of the company?
Loss of a key client - Too much of your revenue coming from your top three accounts highlights the need to diversify business across a wider range of customers. Is this business diversified enough across revenue from clients? Will we be okay if we lose our top two or three clients?
The company has hired poorly or has seen high turnover - Is the sales team diversified or do you feel at-risk based on over-reliance on one or two contributors?
Have the KPIs and metrics kept up with our evolving business? - Do you have a sales manager who helps lead the team and shows what good looks like? Why is the team not using the CRM as we should?
The business that has “stabbed” at a few ideas to help sales - But the sales training paid for did not seem to work. Is there an assumption here? Sales training is important but frequently cannot overcome the lack of strategy, process, structure, analysis, tools, and management.
Be encouraged - if any or all these address aspects of your business it can be normal and easily correctable.
Don’t delay too long to make changes in preparation for the next pivot point to scale and grow further.
What could be helpful or significant is to do a sales diagnostic & assessment that helps you identify the strengths or weaknesses needed to drive performance.
